Tag: debt

Why the sequester had to die.

9:43 am

Why the sequester had to die.

It worked.

It did not work perfectly, and it did not balance the budget or put us on course for a balanced budget. But it did play a critical role in nudging the deficit away from “catastrophic existential threat” territory and toward “terrifying money-suck.” It did this in part by forcing Republicans to accept cuts in military spending, which they are not normally much inclined to do. (It goes without saying that the Democrats are categorically hostile to spending reductions.) Because we cannot rely for very long upon the better angels of congressional nature, these statutory limits are always destined to be short-lived, which should be of some concern to us: Experience shows that when Congress agrees to a budget-control deal, the first thing it does is begin looking for opportunities to undermine that deal.

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The House is about to vote on a trillion dollar spending bill that no one has really read.

7:41 pm

This sums it up: The House is about to vote on a trillion dollar spending bill that no one has really read.

It might include some specific cuts, but in general this budget plan is a surrender to more spending.

The only real solution to this madness, however, really rests with the voters. The spenders in both parties have to be fired, and the only way to do that is to fire them. Sadly, I see no sign of that happening in the hardcore Democratic states such as New York, California, and Illinois, to name just a few. There, the voters are so partisan that they’d rather die than vote for a Republican. And die they will.

Among Republican voters at least there is pressure from the right to spend less. To make it effective, however, the voters still have to do some firing, as far too many Republicans elected officials are willing to go along to get along.

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The 30 counties with the highest medium income just happen to be where most people work for the federal government.

3:47 pm

I am shocked, shocked! The 30 counties with the highest medium income just happen to be where most people work for the federal government.

The only county among the Top 5 for median household income not located near Washington, D.C., was No. 3 Los Alamos County, N.M.—which is the smallest county in that state, and which is also home to the U.S. Energy Department’s Los Alamos National Laboratory. The median household income in Los Alamos County in 2012, according to the Census Bureau, was $112,115.

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The first theorem of government: Government is a racket that benefits the political elite by taking money from everyone else.

9:40 am

The first theorem of government: Government is a racket that benefits the political elite by taking money from everyone else.

He has the data. Look especially at his first graph. And he correctly notes that this has been a bi-partisan effort.

The solution? Vote these bums out of office, repeatedly and often, so that no one has a motive to concentrate power and money in Washington.

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Thirteen insane projects funded by our federal government.

9:49 am

Thirteen insane projects funded by our federal government.

I especially like #5: “NASA spends $3 million looking for signs of intelligent life…in Congress.”

These idiotic programs, which certainly only scratch the surface of the wasteful and corrupt spending in Washington, prove once again that the most recent budget deal is a fraud, that there is no reason to support any increase in federal spending, that we probably could cut the budget in half and not notice anything.

Sadly, that budget deal appears about to pass the Senate.

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Paul Ryan says House Republicans are going to demand something in exchange for raising the debt ceiling again in February.

9:07 am

We shall see: Paul Ryan says House Republicans are going to demand something in exchange for raising the debt ceiling again in February.

Though I’m glad he’s saying this, forgive me if I am skeptical. The Republican leadership in the House has proven itself weak and willing to back down all too often. For example, they have allowed the lie that they alone caused the government shutdown to become accepted as truth, merely by acting as if it were true. The result: they were unwilling to demand any concessions in the just completed budget negotiations, even though they had a strong hand and could have easily obtained concessions, especially on Obamacare.

Then there’s this: Ten quotes that explain why conservatives do not trust the Republican Party.

His conclusion is most pertinent:

Incidentally, the solution to all of this is not to leave the Republican Party. To the contrary, it’s to treat the Republican Party like a puppy that’s having difficulty with house training. When Republicans do the right thing, praise them, support them and do what you can to help them out. When they do the wrong thing, rub their noses in it. Attack Republicans who betray their principles relentlessly, primary them at every opportunity and take over the Republican Party so we can shove the politicians who won’t listen to us to the side. While we will never be able to build an entire party full of men like Ted Cruz, Mike Lee and Rand Paul, we can make it miserable enough for bad actors that the go-along-to-get-along Republicans will conclude it’s better to work with us than face primaries and incessant attacks from their own side in the new media. Most people don’t realize it, but we have already started moving the Republican Party to the Right and the time will come when Republicans are just as afraid of their base as Democrats are of Planned Parenthood and the unions. It’s not going to happen overnight, but if we keep going after Republicans who sell us out, even the ones that are as hostile as John McCain, Peter King and Lindsey Graham will eventually have to get on board if they want to keep their jobs.

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It appears that Senate Republicans will filibuster the Ryan budget deal.

8:56 am

Maybe not so stupid: It appears that Senate Republicans will filibuster the Ryan budget deal.

If the Republicans in the Senate can force some changes, to both the reduction in the sequester cuts over the next two years as well as the procedural change that ends the minority’s ability to block tax increases, then they will have accomplished something.

What I like about this is that they appear to be willing to fight, something Republicans all too often fail to do.

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Yup, this sums it up nicely.

9:07 am

Yup, this sums it up nicely.

House Budget Committee chairman Paul Ryan has now accomplished the astonishing task of pushing House Republicans substantially to the left of the Senate GOP. His budget deal, announced Tuesday night, was achieved by shutting conservative Senate Republicans out of negotiations, by resorting to the old trick of spending now while claiming savings later, by ignoring a symbolically important budgetary red line, and by treating as Democratic “concessions” things to which even Democratic budgeteers already had agreed.

The chess equivalent of Ryan’s deal would be trading a castle for a mere pawn. No wonder conservatives are feeling rooked.

The absurdity of this deal is highlighted especially by the ongoing disaster of Obamacare. The Republicans have a very strong negotiating hand right now. They could have actually demanded a repeal of Obamacare in budget talks and thus pushed the Democrats into a corner for which there really is no escape. What would the Democrats do, shut the government down again so that more people could lose their health insurance?

Instead, Ryan behaved as if the Democrats have a Royal Flush and he only had a pair of twos. The stupid party strikes again!

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The Ryan budget deal includes a provision that limits the ability of the Senate minority to block tax increases.

10:49 pm

The stupid party: The Ryan budget deal includes a provision that limits the ability of the Senate minority to block tax increases.

The bill includes language from the Senate Democrats’ budget that voids senators’ ability to raise a budget “point of order” against replacing the sequester cuts with tax increases. The process is quite complicated, but in practice it grants Harry Reid the authority to send tax increases to the House with a bare majority, rather than the 60-vote threshold that would be required under a point of order.

In other words, another example of a Republican getting hosed in negotiations.

Though I have read several conservative reports about this deal that outline some of its positive benefits, on the whole it appears to be another defeat for the right.

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This detailed look at the budget deal suggests it isn’t as much of a surrender as first implied.

12:23 pm

This detailed look at the budget deal suggests it isn’t as much of a surrender as first implied.

I have to admit this analysis leaves me more hopeful, especially with this point:

That the Democrats would accept a deal like this is a pretty striking indication of how the Republican House has changed the conversation on the spending front since 2010. Think of it this way: In their first budget after re-taking the majority—the FY 2012 Ryan budget, passed in 2011—the House Republicans wanted discretionary spending to be $1.039 trillion in 2014 and $1.047 trillion in 2015. These budgets were of course described by the Democrats and the political press (but I repeat myself) as some reversion to humanity’s barbaric past. Yet this proposed deal with the Democrats would put discretionary spending at $1.012 trillion in 2014 and $1.014 trillion in 2015—in both cases below that first House Republican budget.

Check out the graph at the link. It does illustrate bluntly that the Republicans are beginning to force the budget curve downward, if slowly. It also suggests that should they win big majorities in both Houses of Congress next November they will be posed to finally push for some real reductions in the size of the federal government, as they will have the votes in Congress and will be doing it with the strong endorsement of the voters.

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The Republican leadership expresses contempt for any opposition to its budget deal that abandons the cuts imposed by sequestration

11:11 am

The Republican leadership expresses contempt for any opposition to its budget deal that abandons the cuts imposed by sequestration.

The Republican leadership are fools. If anything, this is the moment to push harder, to not only demand that the sequestration cuts stay in place, but to demand a repeal of Obamacare.

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Why Republicans should reject the surrender budget deal rumors say Paul Ryan is negotiating with Democrats.

9:54 am

Why Republicans should reject the surrender budget deal rumors say Paul Ryan is negotiating with Democrats.

Expect more articles like this. There are a lot of conservatives in the Republican House caucus who are no longer willing to lick the feet of Democrats, even if the Republican leadership is. And any deal that gives up sequestration is going to face their wrath.

Also, these kinds of articles serve to pressure Ryan so that he does not agree to a surrender.

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Another news report suggests that Republicans are preparing to surrender in budget talks.

10:02 am

Another news report suggests that Republicans are preparing to surrender in budget talks.

Senior aides familiar with the talks say the emerging agreement aims to partially repeal the sequester and raise agency spending to roughly $1.015 trillion in fiscal 2014 and 2015. That would bring agency budgets up to the target already in place for fiscal 2016. To cover the cost, Ryan and Murray are haggling over roughly $65 billion in alternative policies, including cuts to federal worker pensions and higher security fees for the nation’s airline passengers.

Republican leaders are also seeking additional savings to knock a small dent in deficits projected to exceed $6 trillion over the next decade. But the deal would do nothing to trim the debt, which is now larger, as a percentage of the economy, than at any point in U.S. history except during World War II. [emphasis mine]

To me, the biggest disappointment of this surrender is that Paul Ryan is negotiating it, proof that he too is no fiscal conservative and worse is far more stupid than I had thought.

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Rumors suggest that Republicans are moving to accept a budget deal that would end sequestration.

8:30 pm

The stupid party strikes again! Rumors suggest that Republicans are moving to accept a budget deal that would end sequestration.

At issue are efforts to craft a compromise that would ease across-the-board spending cuts due to take effect in January, known as the sequester, and replace them with a mix of increased fees and cuts in mandatory spending programs.

As de Rugy notes:

The sequester, no matter how imperfect a policy, is arguably the only victory for fiscal conservatives in a very long time. Their victory is also president Obama’s biggest defeat (outside of the self-inflicted disastrous Obamacare rollout). It is also another opportunity to remind the American people that the alarmist predictions that we were all subjected to about the devastating impact sequestration would have on our economy didn’t materialize.

She adds:

So let’s sum this up: a massive and unnecessary surrender on the sequester, some tax hikes, and more unemployment benefits. It seems to me that the Republicans are learning their moves from the French army.

Not only do most Democrats have to be replaced, so do a significant number of Republicans. Too many of these politicians have no interest in serving the citizenry being crushed by this out-of-control federal government. Instead they serve that government instead.

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The planetary science community is in an uproar over the Obama administration’s proposed restructuring and possible budget cuts to NASA’s planetary research program.

11:41 pm

The planetary science community is in an uproar over the Obama administration’s proposed restructuring and possible budget cuts to NASA’s planetary research program.

Though the Obama administration has been consistently hostile to the planetary program, attempting to cut it severely several years in a row, and though I generally have found these particular cuts to be short-sighted, in this case the article is not very clear about the cuts NASA is proposing. It appears they are going to eliminate for one year the general research fund. I suspect there is waste in this budget, but I also suspect that this is a meat cleaver approach that has not been thought out well, as suggested in the article.

One quote from the article reinforces the foolishness of these management decisions:

Next year, a high-level NASA review is likely to have to decide between shutting down either the Mars Curiosity rover or the Cassini mission to Saturn. Both are successful missions that cost around $60 million a year, a level that Green has said the division simply cannot afford for the long term.

Talk about penny wise, pound foolish. The cost to get these probes to their destination was in the billion dollar range, each. To shut them down when they are working and cost relatively so little now is beyond stupid.

As I have written repeatedly, we have a big federal deficit. We need to cut, and I think NASA’s budget can be cut. It just makes no sense to cut planetary research, when there are other portions of that budget that are accomplishing little and cost far more.

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The federal budget deficit for October was “only” $91 billion.

8:59 am

The day of reckoning looms: The federal budget deficit for October was “only” $91 billion.

The AP article makes a big deal about how much lower this deficit is compared to past Octobers, but at this level, we would still have an annual deficit over $1 trillion. Even it ends up as half that, the numbers are still terrible.

The budget deal that ended the government shutdown ends on January 15. Be prepared for another shutdown. I expect some Republicans are going to once again tie that shutdown to repealing Obamacare.

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Lockheed Martin announced today that it is closing down five facilities and laying off 4,000 employees.

6:03 pm

Lockheed Martin announced today that it is closing down five facilities and laying off 4,000 employees.

This is actually good news for the company (reflected in a rise in its stock price today) as well as the taxpayer. Faced with less easy money from the federal government, the company is trimming some of its waste and unneeded fat. I am confident these cuts will have zero impact on their ability to operate and compete. If anything, they will improve the company’s abilities.

The cuts are also a recognition that the federal cuts from sequestration are not going away, even though those cuts have resulted in literally no visible problems in any federal program. To me, this is another demonstration that there was (and continues to be) plenty of fat in the federal government that can be trimmed away, without serious harm to any federal program.

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In his weekly radio address today, President Obama called for new taxes and increased spending.

8:51 am

Broken record: In his weekly radio address today, President Obama called for new taxes and increased spending.

It is always the same. No matter what happens, Obama calls for more spending and higher taxes. It seems quite unimaginative on his part to never propose some other ideas for solving the federal deficit and the government’s other problems.

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A new poll, taken by a liberal poll company, finds that Democratic incumbents took a much bigger hit than Republican incumbents after the government shutdown.

11:02 am

A new poll, taken by a liberal poll company, finds that Democratic incumbents took a much bigger hit than Republican incumbents after the government shutdown.

As I’ve said repeatedly, the shutdown was a team effort of both parties, that occurred because of their disagreement over Obamacare. The spin has said the Republicans lost big. The evidences says otherwise.

Also, this poll was taken before the most recent disasters relating to Obamacare became public knowledge. I suspect the numbers will worsen for Democrats in subsequent polls.

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The Republican leadership folds.

7:56 pm

The Republican leadership folds on the government shutdown. Key quote:

In exchange for meeting, at least momentarily, all of Obama’s demands, the House GOP is seeking a “framework” for future negotiations.

They get a repeal of an Obamacare tax on medical equipment, but lose everything else, plus give up some of the sequester cuts that have actually produced the first real reduction in the size of government in decades.

And the Republican leadership wonders why they keep losing elections? With incompetent friends like this, who needs enemies.

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The Obamacare website — that doesn’t work and probably never will — was originally supposed to cost $93.7 million and ended up costing more than six times more, $634 million.

6:42 am

Government marches on! The Obamacare website — that doesn’t work and probably never will — was originally supposed to cost $93.7 million and ended up costing more than six times more, $634 million.

Gee, this is almost as good as the James Webb Space Telescope, which is probably going to end up cost nine times more than originally budgeted.

And obviously, this disaster must be the fault of either George Bush or the tea party!

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“It is the Democrats who have taken an absolutist position.”

5:04 pm

“It is the Democrats who have taken an absolutist position.”

The rest of the quote makes this point even clearer.

I’d like to repeal every word of the law. But that wasn’t my position even in this fight – my position in this fight was, we should defund it, which is different from repeal….Even now what the House of Representatives has done is a step removed from defunding – it’s delaying it. Now that’s the essence of a compromise. For all of us who want to see it repealed, simply delaying it for American families on the same terms as has been done for American corporations – that’s a compromise.

Guess who said it.

I repeat that this budget battle illustrates to everyone that the Democrats are willing to shut down the government rather than deal with the terrible problems their terrible law has caused. They imposed Obamcare on everyone without any negotiation or compromise, and remain unwilling to even consider any discussion or changes.

It is their baby, and since they are willing to practically die for it, maybe the voters should give them what they want.

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The Treasury Inspector General has found that the IRS cannot account for $67 million of Obamacare funds.

3:06 pm

We’ve only just begun: The Treasury Inspector General has found that the IRS cannot account for $67 million of Obamacare funds.

he “Health Insurance Reform Implementation Fund” (HIRIF) was tucked into Obamacare in order to give the IRS money to enforce the tax provisions of the healthcare law. The fund, totaling some $1 billion of taxpayer money, was used to roll out enforcement mechanisms for the approximately 50 tax provisions of Obamacare. According to the report: “Specifically, the IRS did not account for or attempt to quantify approximately $67 million [from the slush fund] of indirect ACA costs incurred for Fiscal Years 2010 through 2012.”

The report also found other spending abuses, including using the money for travel that was unjustified.

But everything’s under control. The Democratic Party will make sure Obamacare is funded, no matter what!

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The Obamacare wars are just beginning.

10:35 am

The Obamacare wars are just beginning.

This is war—turning sectors of the economy into partisan battlefields is a cost of their agenda that liberals, with their pure faith in “programs,” never factor in. But wars also have a way of leading to unexpected outcomes.

Read the whole thing. The author outlines how this terrible law, defended again today by the Democrats in the Senate, will have numerous unintended consequences that were unexpected and are generally bad.

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Obamacare was written and passed solely by Democrats.

9:53 am

A reminder: Obamacare was written and passed solely by the Democrats.

The no-trespass sign to the GOP during the writing of the Affordable Care Act deprived it of the benefits of critical scrutiny and helpful ideas from the business community that is a primary GOP constituent. That kind of input might have prevented many of the calamities caused by ObamaCare: the uncertainty prompting employers to put off hiring; the high costs provoking big businesses like Delta and Walgreens to shed coverage, and others to shift parts of their workforce from full to part time; the threat to union-negotiated medical insurance, and the unpopularity of the law.

While Social Security and Medicare always had hard-core foes on the right, that was nothing like the broad, persistent and combative enmity directed at ObamaCare. Democrats have no one to blame but their our-way-or-the-highway approach. [emphasis mine]

This law is the fault of the Democrats, and no one should allow them to distract us into forgetting that. Moreover, when or if the government shuts down, it will be because the Democrats in power once again voted in support of this terrible law. And they did it now, when its destructive consequences have become all too evident.

As much as they like to blame others for their failures, this failure is their responsibility, through and through.

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Senator Cruz’s speech today in trying to get the Senator to pass the House bill funding the government but defunding Obamacare.

7:06 pm

An evening pause: Senator Cruz’s (R-Texas) speech today in trying to get the Senate to pass the House continuing resolution funding the government but defunding Obamacare. His speech begins at 6:25, after Majority Leader Senator Harry Reid (D-Nevada) rejected that bill.

I think it worthwhile for everyone to watch this speech, as Cruz makes it very clear that the only people willing to shut the government down are the Democrats. Moreover, Reid’s rejection establishes unequivocally the fact that the Democrats are once again endorsing Obamacare, despite its now very obvious disastrous problems.

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